QUESTION: Mr. Armstrong; I have been trapped by these gold promoters and they indeed are like used car salesmen, worse since they are not regulated. I listened how they were wrong because the bankers were suppressing gold. If the bankers were eliminated, gold would soar to anything like $25,000 to $100,000. Well, the bankers have all been skewered. Here in Canada, Bank of Nova Scotia is one of the five banks accused in manipulating metals. One would think if the bankers were really preventing the metals from rallying, then why are they collapsing? I suspect you are the only person telling the truth here. Can you explain the real story?

Thank you

PH

ANSWER: Bankers have always fun-run their clients. It is way too tempting to do so when you make the market and you can see the client positions. The big traders are starting to wise up. They are a bit slow. You have to excuse them. Perhaps they were in the special-ed classes growing up. They trusted the big names and are starting to experience being screwed big time. The total gold bullion trade has averaged 4,000 tons annually for the past 10 years. One metric ton equals 32,150.7466 troy ounces. So we are talking about 128,600,000 ounces per year. The US Mint sells about 425,000 one ounce coins. This tend to put the bullion coins in perspective.

About two-thirds is new mine production and one-third is recycled gold according to the World Gold Council. Jewelry accounts for about 50% of gold sales. About 9% of gold production is used in technology. Central Bank demand has fluctuated from 2% to 14% annually of total production. Including ETFs, investment demand accounts for about 33% of world production. This means you have a fresh supply every year of 128,600,000 ounces coming to the market. This is not all “investment”. If the retail trade in the economy slows, jewelry sales decline. That is the bulk of gold but the promoters want to make you think gold is suppressed solely by the bankers for nefarious reasons. There are other factors taking place. This is not all “investment” consumption.
This type of “manipulation” pushing the fix one way or the other to elect stops has been like growing money on trees. This BY NO MEANS suppresses gold or any currency, no less any other commodity that they have played games with. All the big manipulations have ALWAYS been to the UPSIDE, not to the downside. It is absurd to pretend that gold is suppressed perpetually so they can make money in some strange way. Both of the Buffet entries into silver were to push it up. Even GATA knew that was the game in silver back then. Did they tell everyone it was PhiBro & Buffet? Why not?

The bankers get it going from $3 to $7 and and then the promoters talk it up and the retail come in to buy the high every time and they turn around and sell it to them. That is how they make real money. Suppressing gold to keep in down with no volume means no profit. Even the manipulation of Platinum was the the UPSIDE.

Now that the bankers are being forced out of the game, gold was actually being supported by them. They were keeping the hope of a rally alive. Without the bankers, the support will be less and we can see gold fall out of bed. It has fallen to $1201 by 5PM on May 30th. The next support does not come into play until 1170.

Every market has its time and place. The promoters hate my guts because they always want to make a profit getting people to buy. They could care less about the advice they are giving. The market is always right. People are wrong. We can define the levels and the time. Just let the market do its thing.